Replies to post #78061 on Savvy Trades and Investments

[researcher59]

GRBK +1.54 to 18.64 after Riley initiates and JPMorgan raises price target -

fly -

JPMorgan analyst Michael Rehaut raised the firm's price target on Green Brick to $22.50 from $18.50 and keeps an Overweight rating on the shares. Despite the sector being up 38% year-to-date led by an "impressive" rebound in demand following the early days of the pandemic, homebuilders have a "solid amount of additional upside potential left in the tank over the next 15 months," Rehaut tells investors in a research note. Single-family housing starts are currently only approaching their long-term average after an "unprecedented" 13 years of being below 1.0M, the analyst points out. He expect "solid growth" over the next two years to be driven by low interest rates, a recovering job market, improving consumer confidence, tight supply and solid household formation.

B. Riley Securities analyst Alex Rygiel initiated coverage of Green Brick Partners with a Buy rating and $21 price target. The company generates "strong" gross margins and high returns on invested capital and equity, and it maintains a "conservative" balance sheet, Rygiel tells investors in a research note. The analyst also believes Green Brick is positioned to benefit from the "strong" housing market.